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Audit Rips CA Redevelopment Agencies

March 8, 2011, 1pm PST

California Controller John Chiang, an independent, elected officer, audited 18 of the state's 425 redevelopment agencies (representing 16% of all RDA dollars) and found huge differences in how blight is defined and a lack of accountability.

Gov. Jerry Brown's budget proposal calls for shutting down all redevelopment agencies (RDAs) in order to save the state $1.7 billion. The budget deficit is project to exceed $26 billion. Chiang ordered the audit to investigate claims by cities who have vigorously defended their RDAs as vital to fighting blight, creating jobs, and building affordable housing.

From the Los Angeles Times:
"Chiang's report, adding fuel to the argument that redevelopment agencies are sucking up precious funds with little to show for their efforts, was immediately condemned by redevelopment advocates as politically motivated. A furious battle is playing out between the state and cities over the governor's proposal to scrap redevelopment entirely."

"For a government activity which consumers more than $5.5 billion of public resources annually, we should be troubled that there are no objective performance measures demonstrating that taxpayers are receiving optimal return for each dollar invested," Chiang said in a statement.